A) Most businesses start without any formal investment.
B) This is a valid reason for not starting a business.
C) Formal investment will be needed to make a successful company.
D) People who have no money cannot start a business.
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A) investors provide financial support with no expectation of direct return
B) investors are rewarded for their financial support
C) equity is exchanged for the contribution
D) funds are treated as loans
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A) only small amounts, under $1,000
B) small amounts, generally under $5,000
C) as much money as can be raised through family and friends
D) from small amounts to amounts in the millions of dollars
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A) They must create something to share with contributors.
B) They must offer to return the exact amount of the contributed funds within a given period of time.
C) They must offer to give a portion of their funds to a charity.
D) They must offer to return the money if the person changes his or her mind.
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A) mostly the arts, such as art, theater, and photography
B) mostly high-tech startups
C) mostly retail and real estate
D) all these (and more)
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A) angel investor
B) venture capital funds
C) the use of personal funds
D) a bank loan
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A) to obtain customer lists
B) to obtain ideas for their new sports cars from their community of hobbyists, designers, and engineers
C) to obtain ideas for their new sports cars from the general public
D) to obtain users for pilot testing
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A) the success of other crowdfunding sites
B) the JOBS Act, signed by President Obama
C) changes in Dow Jones
D) advances in the software of crowdfunding sites
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A) startup
B) sweat equity
C) penny pinching
D) zero-based funding
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A) Kickstarter
B) Peerbackers
C) Crowdrise
D) RocketHub
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C
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A) Projects are easy to conduct.
B) There are various options to funds other than giving a part of the company away.
C) It is relatively risk free.
D) It is the easiest way to get worldwide recognition.
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A) You may gain advice and guidance.
B) You will not have to pay the investment.
C) You will not be expected to use your own money toward your business.
D) The funding is easy to attain.
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A
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A) Kickstarter
B) Quirky
C) Indiegogo
D) Rockethub
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A) retirees who enjoy the more direct form of investment
B) young 24- to 35-year-olds who have an income over $100,000 a year
C) 40- to 60-year-olds with incomes over $250,000
D) millionaires looking to help the social good
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A) The three major sources of formal funding.
B) A slang term meaning angel investors.
C) Your circle of family, friends, and fools willing to help you with your initial startup.
D) Free financial funding.
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Both crowdfunding and crowdsourcing migh...View Answer
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Answers will vary but should emphasize the many stages of product development that can benefit from crowdsourcing and funding.Answers may include finding design and product development support, manufacturing resources, and marketing advice.Partners may be identified and multiple relationships formed that can benefit the company later on.Engaging the audience will stimulate interest in the product and may help identify the first buyers.Manufacturing options might be found through sourcing, and costs of production can be reduced through outsourcing various parts of the manufacturing (or service).Funds can be raised for various stages of development under a variety of funding arrangements.
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A) a cash award
B) awards-in-kind that offer equivalent value for the cash contributed
C) offering the contributor to be the first to be able to purchase the product, along with a contribution award
D) offering to list the person as a founding contributor on all product and service literature
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A) obtaining funds from a group of investors
B) obtaining funds from many people, who together form "the crowd"
C) raising capital from a large audience, usually through the Internet
D) a high-risk strategy to raise startup money
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A) set the right fundraising goal
B) practice the pitch
C) seek and accept advice
D) get the campaign started
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